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BMO6511 Strategic Management And Business Policy

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BMO6511 Strategic Management And Business Policy

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Course Code: BMO6511
University: Victoria University

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Country: Australia


Identify and evaluate the suitability of the organisation’s current corporate level strategies.(a) Identify and discuss the corporate level strategies that the organisation is implementing/has implemented.(b) Evaluate the suitability of the organisation’s current strategies. Recommend no more than two alternative strategic initiatives that the organisation should pursue to improve its effectiveness and justify your recommendations.


Qantas Airlines is considered as one of the biggest largest domestic and international airline. The activities of the company were started in 1920. It has been analyzed that there are two brands names like Qantas and Jetstar.
So, in this report, the strategic analysis will be done on Qantas Airlines. In the first phase of the report, the discussion will be made on the corporate level strategies of the company. In the last phase proper evaluation will be done and recommendations will be given on the basis of the overall analysis.
Corporate level strategy of Qantas Airlines
There are various strategies that are considered by the company but corporate strategies of Qantas   are related to diversification. It has been seen that this is considered as the powerful corporate strategy of the company that assist in achieving high returns and also helps to achieve competitive advantage by focusing on the competitors prevailing in the market.
The company considered this strategy as it can help to enhance the value of the stakeholders. It has been analyzed that company offers effective services to its customers so that it can be easy to attract more customers towards the services given by the company. It has been analyzed that company also focuses on merger and acquisition which has given assistance to accomplish overall goals and objectives (He & Balmer, 2017).
Through merger and acquisition company emphasized on achieving various advantages related to operational cost reduction and also with minimizing the overall risk of the competitors.  In 2008 the company focused on the strategy by having merger with the Jet star and through this merger the company has accomplished and achieved the vertical expansion (Redpath, O’Connell & Warnock-Smith, 2017).
The company achieved profits and growth in the competitive market. It has been analyzed that marketing function of the company focuses on analyzing the demand of the company so that it can be simple to accomplish goals and objectives in an effective manner (Iatrou & Oretti, 2016). 
Global level strategy
The company also considered global level strategy so that business can be developed in a proper manner. The company focused on enhancing the market share by entering into the Asian market. In the Asian market it has been analyzed that there were few entry barriers and also the competitive advantage can be attained easily.  It has been evaluated that Asian market offers a platform for the business to conduct its activities on the oversea platform. Also the transportation facilities are less competitive and high population was focusing towards the services of airlines. So, it has been investigated that through this corporate strategy the company is enhancing in the market and achieving large market share (Dobni, Klassen & Sands, 2016).
Also through this the company focuses on attaining the entire competitive advantage to be successful.  It has also been analyzed that the international business of the company created an essential alliance with the Emirate alliance to offer a major destinations in the Europe (Whyte & Lohmann, 2015).
The alliance will offer various services to different destinations   which will create an advantage sharing model. Also this strategy helps the company to enter into the different markets with particular invested capital of the market (O’Connell & Williams, 2016).
Outsourcing strategy
It has been seen that company focuses on outsourcing strategy as it helps to enhance the profit margin and also with this it can be easy to maintain goodwill in the market. This strategy also helps the company to consider the labor at cheap rates in the overseas market and also enhanced the overall skill and knowledge. The company is emphasizing on implementing this strategy in an effective strategy as it can help to minimize the prices and can help to achieve the competitive benefits. Outsourcing is considered as a successful strategy that can help the company to enhance its market share and also labor can be attracted towards the activities of the company (Taneja, N.2016).
This offers fewer cots to the organizations to conduct the activities of the company in an effective manner. Red planet was also created as a subsidiary company to Qantas loyalty analytical consulting services. The main focus of the company is to leverage the Qantas   transaction information and also to focus on customer insight so that it can become one of the leading digital media and research business service business (Ford, Paparoidamis & Chumpitaz, 2015).
It has been evaluated that the diversification strategy of the company has brought change in the entire operations of the company. The growth has also been achieved with this strategy. The growth in the region can help the company to accomplish goals and objectives and can also help to achieve competitive advantage in an effective manner. The company has also attained goodwill in the market. Qantas is considered as the popular company and the success can be achieved with the help of the strategies considered by the company.
Differentiation of the services
It has been recommended that the red planet diversification should have proper review. There are many questions related to diversification which overlap the overall capabilities. Also the professional consulting company has different structure and capabilities and it is a serious problem to generate the value creation.
It is also necessary for the Jet star group to focus on acquisition and merger so that international strategy can be supported and also it will help to expand in the Asian regional airline markets. The problems which are faced at the time of entry should be considered with proper M&A strategy. It has been analyzed that expansion in the Asian market can fluctuate in context to dominant income stream. So, it should also be considered in a proper manner.
The diversification strategy of the company related to Jet star should focus on proper differentiation of the product and services.  Differentiation can be made with the help of technology, marketing and also with proper management.
Enhancing customer satisfaction
The company should also focus on maximizing the level of customer’s satisfaction so that it can be simple to accomplish goals and objectives. It is important for the company to focus on enhancing the satisfaction level of the customers by offering services less than the competitors in the market. The services which are offered by the company should be low in price so that customer can be easily attracted towards the company (Sorescu & Sorescu, 2016). To bring improvisation in the services, it is important for the company to respond to the queries and issues of the customers so that level of satisfaction can be enhanced of the customers.  If complaints are resolved on time then it can help to accomplish the overall goals and objectives of the company. Customer satisfaction is necessary for the company to expand the market share (Blut, Frennea, Mittal & Mothersbaugh, 2015).
By analyzing the report, it has been concluded that the company should offer different strategies from its competitors so that customers can be attracted towards the company. It is also important to reduce the prices of the services so that it can be easy to maintain the relation with the customers and also to enhance their satisfaction level. The company should use its brand image to induce the customers towards the services offered in the market.  The company should try to maintain proper diversification strategy which is necessary to be considered so that operations of the company can be expanded on the global platform. It is important for the company to focus on merger and acquisition so that competitive advantage can be attained easily in the competitive market.
Blut, M., Frennea, C. M., Mittal, V., & Mothersbaugh, D. L. (2015). How procedural, financial and relational switching costs affect customer satisfaction, repurchase intentions, and repurchase behavior: A meta-analysis. International Journal of Research in Marketing, 32(2), 226-229.
Dobni, C. B., Klassen, M., & Sands, D. (2016). Getting to clarity: new ways to think about strategy. Journal of Business Strategy, 37(5), 12-21.
Ford, J. B., Paparoidamis, N., & Chumpitaz, R. (2015). Service quality, customer satisfaction, value and loyalty: An empirical investigation of the airline services industry. In The Sustainable Global Marketplace (pp. 187-187). Springer, Cham.
He, H. W., & Balmer, J. M. (2017). Alliance Brands: Building Corporate Brands through Strategic Alliances?. In Advances in Corporate Branding (pp. 72-90). Palgrave Macmillan, London.
Iatrou, K., & Oretti, M. (2016). Airline choices for the future: from alliances to mergers. Routledge.
O’Connell, J. F., & Williams, G. (2016). Airline Strategy: Keeping the Legacy Carrier Competitive. How Can Mature Airlines Stay Ahead in the Low-fare Airline Era?. In Air Transport in the 21st Century (pp. 179-194). Routledge.
Redpath, N., O’Connell, J. F., & Warnock-Smith, D. (2017). The strategic impact of airline group diversification: The cases of Emirates and Lufthansa. Journal of Air Transport Management, 64, 121-138.
Sorescu, A., & Sorescu, S. M. (2016). Customer satisfaction and long-term stock returns. Journal of Marketing, 80(5), 110-115.
Taneja, N. K. (2016). Adaptation Strategies by Airlines. In Airline Industry (pp. 101-125). Routledge.
Whyte, R., & Lohmann, G. (2015). The carrier-within-a-carrier strategy: An analysis of Jetstar. Journal of Air Transport Management, 42, 141-148.

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